Asked by Kaila Martinez on Jul 02, 2024

If a job is not completed at year end, then no manufacturing overhead cost would be applied to that job when a predetermined overhead rate is used.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual units of production, based on a chosen activity base.

Manufacturing Overhead Cost

Every cost linked to the production process that is not direct materials or direct labor expenses.

  • Absorb the techniques for computing and applying predetermined overhead rates within job costing frameworks.